Download Marketing: A Practical Approach

Chapter 1
The Field of Marketing
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–1
Nature and scope of marketing
• Marketers:
–
–
–
–
Centre on attempts to understand consumers.
Seize an advantage over competitors.
Gain a foothold in a market.
Satisfy consumers.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–2
Who and what is marketed?
• Marketing is diverse and complex and
involves all of us through:
–
physical goods—clothes, machines, DVDs.
– services—banks, theatres, health insurance.
– ideas—’Clean Up Australia’, road safety.
– people—Cathy Freeman, Barry Humphries
(people are a marketable product or brand).
– places—Daintree Forest, a new business
estate.
– experiences—travel, yoga.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–3
Marketing defined
• Marketing can be described as any exchange
activity intended to satisfy human needs or wants.
• Marketing is a system of business activities aimed
at achieving organisational goals by developing,
pricing, distributing and promoting products,
services and ideas that will satisfy customers’
wants.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–4
Needs, wants and exchange
• Needs— basic feeling of deprivation.
• Want—the particular forms a need might take.
• Exchange—offering something of value in
return for something else of value.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–5
The stages in the evolution of
marketing
Production
stage
Sales
stage
Marketing
stage
Societal
marketing
stage
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–6
The evolution of marketing
The production-orientation stage
• Typical thinking of the 1930s.
• Focus on increasing production.
• Production and engineering staff have control of
the organisation; there is a sales department but its
function is simply to sell the company’s output at a
price set by the production and financial managers.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–7
The sales stage
• Typical thinking from the 1930s–1960s (post-
depression Australia)
– The firm’s emphasis is on selling its output.
– There are many similar products on the market.
– This was the age of ‘hard sell’ (door-to-door
sales)
– Supply usually exceeded demand.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–8
The marketing-orientation stage
(1960s)
• The firm’s goals become customer orientated
and profitable sales volume.
• Attention is focused on marketing and
satisfying customer needs and wants rather
than on selling.
• Activities that were previously not considered
marketing come under the control or
influence of marketing staff, such as
packaging, inventory control, warehousing,
delivery, and some aspects of product
planning.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–9
The societal marketing concept
•
•
•
Marketers must act in a socially responsible
manner.
The external environments influence on a firm’s
realisation that our natural resources are finite.
Increasing emphasis on the management of
human resources.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–10
Marketing versus selling
• Marketing
–
Company finds out what the customer wants
and develops a product to satisfy those wants,
while yielding a profit.
• Selling
– A company makes a product and then uses
various selling methods to persuade customers
to buy it.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–11
The marketing concept
Marketing concept
• All company planning and operations should be
customer oriented, focussing on satisfying
customers’ needs and wants.
• All the marketing activities in a firm should be
coordinated and consistent.
• Customer-oriented, coordinated marketing
activities are seen as the means of achieving the
firm’s own objectives.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–12
Three requirements for
implementing the marketing
concept
Marketing concept
Customer
orientation
+
+
Organisation’s
performance
objectives
Coordinated
marketing
activities
Customer
satisfaction
Organisational
success
+
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–13
Marketing developments
• The marketing concept is not a static principle for
business management. As the world changes, so
too does the way in which the way marketing
concepts are applied to organisations.
For example:
• loyalty marketing schemes
• value adding
• mass customisation.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–14
Relationship marketing
• Loyalty marketing schemes—customer rewarded
for continuing to buy from the organisation.
• Value adding—increasing customer satisfaction by
providing extra goods and services over and above
the basic product being offered.
• Mass customisation—increasing the practice of
developing many variations in a firm’s offerings.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–15
Quality and marketing
• Reducing product quality variability.
• Increasing responsiveness to changing customer
needs.
• Reducing costs through less wastage or
reworking.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–16
Fast changing technologies in
marketing
Marketing uses different technologies to achieve its
aims, such as:
• Relational databases that can store and sort large
amounts of information.
• Communication technologies, such as
telemarketing call centres, email and SMS (text
messaging).
• The Internet—online retail, banks, insurance firms,
supermarkets etc.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–17
Globalisation
• Many markets are no longer limited by national or
regional borders or boundaries. The speed of this
trend for globalisation has been driven by
international travel, global music, TV and movie
distribution and, of course, the Internet.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–18
Criticisms of marketing (some
examples in terms of the elements of
the marketing mix)
Product
Possible criticisms
Quality
MP3 players do not work; clothes
shrink; software programs have bugs.
Packaging
Not enough information on labels;
deceptive graphics; poor operating
instructions.
Service is slow or uncaring; repair
services are overpriced.
Too many brands or varieties with few
real differences.
Services
Range
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–19
Criticisms of marketing (continued)
Price
Structure
Possible criticisms
Levels
Prices are too high; prices are
controlled by large firms; price
comparisons are difficult to make.
Discounts
Quoted discounts are not genuine:
some buyers are not able to get
special deals: little real price
competition between firms.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–20
Criticisms of marketing (continued)
Distribution
system
Possible criticisms
Intermediaries
Too many ‘middlemen'; each taking
a ‘cut’.
Delivery
Inflexible and slow: lack of care in
storage and handling.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–21
Criticisms of marketing (continued)
Promotional Possible criticisms
activities
Personal
Too many ‘middlemen'; each taking a
selling
‘cut’
Advertising
Inflexible and slow: lack of care in
storage and handling.
Direct and
digital
marketing
Customers details are on lists without
their permission; telemarketers
phone at inconvenient times; mobile
phones and PCs are flooded with
annoying email and text promotions.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–22
Marketing management
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–23
The planning sequence
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–24
The marketing mix
• The four key elements of marketing are referred to
as the ‘marketing mix’.
• These elements are: Product, Price, Promotion and
Place (distribution).
• These elements, also known as variables, are
controllable by marketers and are the key to
attracting a specific target market.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–25
Marketing plan
Elements of the marketing plan are:
• Situation analysis—analysis of trends or changes in
the firm’s external environment; analysis of the
specific market; analysis of competitors, analysis of
the company/product situation, strengths and
weaknesses.
• Marketing objectives—development of clearly
expressed statements of what the plan is to achieve.
• Market segmentation, targeting and positioning
strategy—identify groups of people or organisations
to direct marketing strategies to, select a particular
image to be used for the product or brand.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–26
Marketing plan (continued)
• Marketing mix—develop specific, tactical action
plans for the product, its pricing, distribution and
promotion.
• Budgets and marketing controls—prepare
forecasts of sales, costs, expenses and profits,
prepare other measurements or metrics to be used
to check actual performance against marketing
objectives.
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–27
The marketing mix
Copyright  2007 McGraw-Hill Australia Pty Ltd
PPTs t/a Marketing: A Practical Approach 6/e by Peter Rix
Slides prepared by Angela Tasevski
1–28